DOD Awards $12.8M for Heavy Engineering Construction in Georgia
Contract Overview
Contract Amount: $12,831,608 ($12.8M)
Contractor: Foley Company
Awarding Agency: Department of Defense
Start Date: 2005-07-08
End Date: 2007-10-01
Contract Duration: 815 days
Daily Burn Rate: $15.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Place of Performance
Location: FORT STEWART, LIBERTY County, GEORGIA, 31314
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $12.8 million to FOLEY COMPANY for work described as: Key points: 1. Contract awarded to FOLEY COMPANY for $12.8 million. 2. Full and open competition was utilized. 3. Project duration spans over 800 days. 4. No small business participation noted.
Value Assessment
Rating: fair
The award amount of $12.8 million for heavy engineering construction appears within a reasonable range for projects of this nature. Benchmarking against similar contracts would provide a more definitive assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust process for price discovery. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: The competitive bidding process likely ensured a fair price, maximizing taxpayer value for the services rendered.
Public Impact
Infrastructure development in Georgia benefits from this construction project. The Department of the Army's operational capabilities may be enhanced. Potential for local job creation during the construction phase.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract.
Sector Analysis
This contract falls under the heavy and civil engineering construction sector, which is critical for infrastructure development and maintenance. Spending in this sector can vary significantly based on government priorities and economic conditions.
Small Business Impact
The absence of small business participation is a notable point. Efforts to ensure broader inclusion of small businesses in future solicitations could be explored to promote economic diversity.
Oversight & Accountability
The contract was awarded under full and open competition, indicating a standard oversight process. Further review of performance reports and payment milestones would be necessary for a complete oversight assessment.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- No small business participation.
- Long contract duration increases risk.
- Potential for cost escalation not borne by government.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, ga, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.8 million to FOLEY COMPANY. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is FOLEY COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $12.8 million.
What is the period of performance?
Start: 2005-07-08. End: 2007-10-01.
What specific heavy and civil engineering construction services were procured under this contract?
The contract, identified by NAICS code 237990, pertains to 'Other Heavy and Civil Engineering Construction.' This broad category can encompass a wide range of activities, including the construction of infrastructure such as roads, bridges, dams, pipelines, and other large-scale civil engineering projects. Specific details would be found within the contract's statement of work.
What are the potential risks associated with a firm fixed price contract for a project of this duration?
Firm fixed price contracts can expose the contractor to risks if costs escalate beyond initial estimates due to unforeseen circumstances like material price increases or labor shortages. For the government, the risk is that the contractor may cut corners on quality to maintain profitability, or that the initial price may have been inflated to account for contractor risk. Effective oversight is crucial to mitigate these risks.
How does the duration of the contract (815 days) impact the overall value and potential for cost overruns?
A longer contract duration of 815 days increases the potential for cost fluctuations due to market changes in materials, labor, and economic conditions. While a firm fixed price contract aims to cap costs, extended timelines can heighten the risk of contractor claims for equitable adjustments or potential quality compromises if the contractor struggles with profitability over the long term. Close monitoring is essential.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Otter Tail Power CO (UEI: 831430322)
Address: 1000 N GRAND AVE, SEDALIA, MO, 04
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $463
Exercised Options: $463
Current Obligation: $12,831,608
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-07-08
Current End Date: 2007-10-01
Potential End Date: 2007-10-01 00:00:00
Last Modified: 2009-06-19
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